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The Effect of FDI Agglomeration on Carbon Emission Intensity: Evidence from City-Level Data in China

Author

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  • Yunyun Wu

    (School of Economics, Wuhan University of Technology, 122 Luoshi Road, Wuhan 430070, China)

  • Han Xu

    (School of Management, Hubei University of Chinese Medicine, 16 Huangjiahu West Road, Wuhan 430065, China
    Research Center for the Development of Traditional Chinese Medicine, Key Research Institute of Humanities and Social Sciences of Hubei Province, 16 Huangjiahu West Road, Wuhan 430065, China)

Abstract

How to accelerate the reduction of carbon emissions in the context of the “double carbon” target has become a key concern for all sectors of society. This paper firstly analyzes the influence mechanism of foreign direct investment (FDI) agglomeration on carbon emission intensity, from a theoretical perspective. Then, based on a panel data of 270 cities in China from 2006 to 2019, this paper uses ArcGIS software to visually analyze the spatial and temporal characteristics of FDI agglomeration and carbon emission intensity, and constructs traditional fixed effect models and spatial econometric models for empirical analysis. The results show that, first, FDI agglomeration has a significantly positive impact on the carbon emission intensity of local and neighboring cities with crowding effect. Second, the level of technological innovation can mitigate the crowding effect of FDI agglomeration on carbon emission intensity in local and neighboring cities. Third, there is a negative spatial autocorrelation between the local carbon emission intensity and the carbon emission intensity of neighboring cities. Fourth, the crowding effect of FDI agglomeration on carbon emission intensity is mainly concentrated in the central and western regions. Based on the research conclusions, this paper puts forward corresponding countermeasure suggestions.

Suggested Citation

  • Yunyun Wu & Han Xu, 2023. "The Effect of FDI Agglomeration on Carbon Emission Intensity: Evidence from City-Level Data in China," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1716-:d:1037689
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    References listed on IDEAS

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